The federal government has announced plans to scrap the financial contribution requirement for online streamers set by the CRTC and substitute it with government funding, according to a court document. The attorney general’s office stated that the government intends to eliminate the base contribution requirement for streaming services and offer government funding instead. However, the Canadian Association of Broadcasters expressed skepticism, stating that the communication did not align with their understanding of the government’s position.
Culture Minister Marc Miller’s office declined to provide further details on whether the contribution requirement would be permanently or temporarily removed. The government previously announced its intention to issue a new policy directive to the CRTC following the regulator’s decision to raise contributions for large streaming services. This move, known as the “Netflix tax,” was implemented after the passage of the Online Streaming Act by the Liberal government in 2023.
While the U.S. Trade Representative viewed the Online Streaming Act as a trade issue, the government pledged to publish the new policy directive to the CRTC soon. In response to concerns about affordability, Prime Minister Mark Carney emphasized that the decision to eliminate the contribution requirement had been made two months prior. The Canadian Media Producers Association stressed the importance of foreign streamers reinvesting revenue from Canadian audiences into Canadian content.
The government faces calls to ensure stable funding for the cultural sectors and to support Canadian stories. Despite criticism from opposition parties, the government’s decision to replace contributions with government funding for streamers remains contentious. The discussions between Canada and the U.S. regarding trade issues, particularly in the digital sector, continue to shape the landscape of media and content production in both countries.
